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Minnesota Business Hot Topic: PFML

Paid Family and Medical Leave

Minnesota has adopted a Paid Family and Medical Leave (PFML) program that will be affecting all of the employers in the state. This plan is separate from the Earned Sick and Safe Time (ESST) plan that was incorporated in 2023. (A summary comparison is attached for your reference.). The Paid Family and Medical Leave (PFML) plan takes effect January 1, 2026.

Our office has been working through the details and becoming educated on the plan specifics to assist our clients in working through the necessary steps to be compliant. This plan will be managed under the Minnesota Unemployment website and the MN Paid Leave website. Please contact Kaitlyn or Robbin to set up a 30 minute phone or in-person meeting to discuss the following:

who currently has roles under your MN Unemployment account
who in your company will be assigned as the Paid Leave Administrator
how to set up the PLA account
how the premium rates will be handled (employers have the option to pay the entire premium or cost share with employees through a payroll deduction)
any concerns you may have regarding Paid Leave

Even though you may not currently be required to pay into MN Unemployment for your employees, you are required to report and pay into PFML.

The following information is directly from the MN Department of Employment and Economic Development (DEED) office in their most recent update. Please be aware of the following dates.

November 15 – the deadline for applying to the State for approval to utilize an approved Equivalent Plan Substitution (utilizing an approved insurance company to handle your plan). An approved list of providers is available upon request. The Equivalent Plan is an OPTION. The plan is currently set up to be administered through the state account with an administrator appointed from your business.

If you miss this date, you can apply by the end of the next filing quarter to utilize this option. Equivalent plans can go into effect at the start of any quarter. For your equivalent plan to take effect starting January 1, 2026, your request must be received by Paid Leave by November 15, 2025. If you submit your request after November 15, the earliest your equivalent plan could start is April 1, 2026 (the start of the next quarter).

December 1 – notify your employees how you will be handling the program. Employers are required to both hang a Paid Leave poster and inform employees individually.

Posters must be displayed where employees can easily see them and must be posted in English and any other language that is primary for five or more workers.
Employees must be notified individually in their primary language, and employees must acknowledge that they have received the information. This can be done by signing a form, acknowledging receipt electronically or in another way decided by the employers.